Feltex plaintiffs lose costs appeal
The shareholders taking action against the directors and promoters of failed carpet maker Feltex have been ordered by the High Court to pay a total of about $90,000 of costs to the defendants.
Justice French released her judgment today on shareholder Eric Houghton's application for clarification or recall of her costs decisions on December 2011 hearing where he had sought a split trial decision from the High Court.
Houghton is representing about 3000 shareholders alleging the prospectus released by Feltex was misleading and contained untrue statements.
The December 2011 hearing was followed by more hearings last year.
However in a decision just released, Justice French said her previous decision on costs was reasonable and dismissed the plaintiff's application.
She ordered the plaintiffs to pay:
- costs of $19,900 and disbursements of $3,144.35 to first defendants - the former Feltex directors, Tim Saunders, Sam Magill, John Feeney, Craig Horrocks, Peter Hunter, Peter Thomas and Joan Withers.
- costs of $25,074 and disbursements of $5967.50 to the second and third defendants Credit Suisse Private Equity and Credit Suisse First Boston Asian Merchant Partners,
- costs of $15,721 and disbursements of $3172.90 to the fourth defendant First NZ Capital Securities, and
- costs of $13,134 and disbursements of $3043.28 to the fifth defendant Forsyth Barr.
- © Fairfax NZ News